D196- Principles of Financial and Managerial Accounting exam with answers

D196- Principles of Financial and
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Managerial Accounting exam with |\ |\ |\ |\




answers

bookkeeping - CORRECT ANSWERS ✔✔day to day keeping |\ |\ |\ |\ |\ |\ |\



of transcations
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steps of decision making - CORRECT ANSWERS
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✔✔identify issue |\




gather information |\




identify alternatives |\




select option that most likely results in desired objective
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accounting - CORRECT ANSWERS ✔✔analysis of events
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record and report financial effects of business activities
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where does capital come from (3) - CORRECT ANSWERS
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✔✔investors
creditors(lenders)
business itself (from earnings retained)
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,2 main types of accounting - CORRECT ANSWERS
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✔✔financial and managerial |\ |\




managerial accounting - CORRECT ANSWERS ✔✔gather |\ |\ |\ |\ |\ |\



and analysis of information for internal use and decision
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making.


financial accounting - CORRECT ANSWERS ✔✔gather,
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report, analysis of information for external users-
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investors and creditors. summary of a business
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what does managerial accounting review - CORRECT
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ANSWERS ✔✔product cost, breakeven analysis,
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budgeting, performance analysis, outsource production
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what does financial accounting review - CORRECT
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ANSWERS ✔✔credit analysis, financial health, estimate
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value of the company
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examples of external financial reports for financial
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accounting - CORRECT ANSWERS ✔✔annual report, |\ |\ |\ |\ |\ |\



financial statement, balance sheet, income statement,
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statement of cash flow |\ |\ |\

,balance sheet - CORRECT ANSWERS ✔✔reports assets
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and liabilities. basic.
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list as of a point in time. as of today, as of yesterday
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income statement - CORRECT ANSWERS ✔✔how much
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did you ,ake
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period of time - from nov to jan
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statement of cash flow - CORRECT ANSWERS ✔✔where |\ |\ |\ |\ |\ |\ |\ |\



did the cash come from and where did the cash go
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period of time - from nov to jan
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lender - CORRECT ANSWERS ✔✔lends money with intend
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to get it back plus interest. need current income, existing
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obligations, existing assets, payroll stub, tax return, |\ |\ |\ |\ |\ |\ |\



monthly payments, bank stmts |\ |\ |\




investor - CORRECT ANSWERS ✔✔buys into your|\ |\ |\ |\ |\ |\ |\



company. looks at if the business is profitable, what they
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are buying, buying obligations, potential future
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projections


what forms will the manager of a business use - CORRECT
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ANSWERS ✔✔both financial and managerial
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, fasb- what does it stand for, who are they and what do
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they do - CORRECT ANSWERS ✔✔financial accounting
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standards board |\




private group, not govt agency, no legal authority,
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conducted of people from a variety of business related |\ |\ |\ |\ |\ |\ |\ |\ |\



backgrounds.
establishes financial accounting and reporting standards
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for private sector companies
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1 of the two boards that make up GAAP
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gasb- what does it stand for, who are they, what do they
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do - CORRECT ANSWERS ✔✔governmental accounting
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standards board |\




sets accounting and financial reporting standards for
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state and legal governments. |\ |\ |\




authority over financial reporting by government entities
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1 of the two boards that make up GAAP
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gaap - CORRECT ANSWERS ✔✔generally accepted
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accounting principles |\




sec - CORRECT ANSWERS ✔✔Securities and Exchange
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Commission
regulates us stock exchange. provides investors with full |\ |\ |\ |\ |\ |\ |\ |\



and fair information about publicly traded companies.
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